Nestle's Bulging Stockrooms,
Margin Drop Worry Analysts

By

Ernest Beck Staff Reporter of The Wall Street Journal

Updated Aug. 30, 2001 12:01 a.m. ET

Nestle calls itself "the world's food company." Every second of every day, the company boasts, more than 3,400 cups of Nescafe instant coffee are sipped around the world. And in addition to coffee, chocolate bars and infant formula, the Swiss company also sells ice cream, pasta, bottled water and pet food.

With so much stuff to sell in so many different places, analysts closely watch what Nestle is stockpiling in factories and warehouses -- and how fast goods are moving to shops and consumers. Last week, in its...